FOXWORKS ENGINEERING LTD

Executive Summary

FOXWORKS ENGINEERING LTD is a micro-entity showing early signs of viability with positive profitability and net assets but constrained by very low turnover and limited scale. The company exhibits healthy short-term liquidity but should prioritise revenue growth and proactive liability management to strengthen financial resilience. With focused efforts on expanding operations and maintaining cash flow discipline, the company’s financial outlook can improve substantially.

FOXWORKS ENGINEERING LTD - Analysis Report

Company Number: 14403504

Analysis Date: 2025-07-20 17:38 UTC

Financial Health Assessment for FOXWORKS ENGINEERING LTD

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1. Financial Health Score: C

Explanation:
FOXWORKS ENGINEERING LTD, a micro private limited company, is in the nascent stage with first-year financials reflecting very modest business activity. While it shows a positive net asset position and a profit for the period, the extremely low turnover and limited scale of operations highlight early-stage symptoms, suggesting a fragile financial health status. The score "C" reflects a company that is solvent and operational but yet to demonstrate robust financial strength or growth.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	1,499	Very low revenue indicating early-stage or minimal trading
Profit for the Period	1,081	Profit generated, positive sign but small scale
Fixed Assets	1,050	Investment in long-term assets, reasonable for startup
Current Assets	1,335	Healthy short-term asset base including cash/debtors
Current Liabilities	0	No immediate debts, indicating good short-term liquidity
Net Current Assets	1,335	Positive working capital, a healthy cash flow symptom
Provisions for Liabilities	1,254	Noted provision reduces net assets, possibly tax or other contingent costs
Net Assets (Equity)	1,131	Positive shareholders’ funds indicating net worth
Employees	1	Very lean operation, low overhead risks

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3. Diagnosis: Financial Condition Analysis

• Healthy Cash Flow Indicator: The company has no current liabilities and positive net current assets, reflecting no short-term cash flow distress. This is a reassuring sign that it can meet immediate financial obligations without strain.

• Symptoms of Early-Stage Business: The turnover of £1,499 is extremely low for a business incorporated in October 2022, indicating either the company is in a startup phase or hasn’t yet scaled its operations. This low revenue base limits the company's ability to absorb shocks or invest in growth.

• Profitability Despite Low Scale: The company reports a profit of £1,081, which, although small, demonstrates initial commercial viability. The absence of staff costs and minimal expenses suggest lean operations but also a reliance on the director or minimal resources.

• Provision for Liabilities: The significant provision (£1,254) impacts net assets and may relate to tax or deferred liabilities. This is a cautionary symptom that potential future outflows might affect financial health if not carefully managed.

• Balance Sheet Strength: Positive net assets and shareholders’ funds reflect that the company is solvent with a positive net worth. The fixed assets investment shows some commitment to operational capability.

• Single Director/Shareholder Structure: Mr. Craig Daniel Fox holds full control, which simplifies decision-making but also concentrates risk in one individual’s ability to manage operations and finances effectively.

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4. Recommendations: Actions to Improve Financial Wellness

1. Increase Revenue Generation: Focus on business development and sales growth to improve turnover. The very low revenue is a critical weakness; expanding client base and services is essential to build a sustainable enterprise.

2. Monitor and Manage Provisions: Clarify the nature of the £1,254 provision and ensure adequate cash reserves to meet these liabilities. Avoid surprises that could strain finances.

3. Maintain Positive Cash Flow: Continue the current prudent approach to managing current liabilities and working capital. Healthy cash flow is vital for operational stability.

4. Plan for Staff and Operational Scaling: As business grows, consider incrementally increasing staff or outsourcing to maintain service delivery without compromising cost control.

5. Financial Forecasting and Budgeting: Implement forecasting to anticipate cash needs, tax liabilities, and capital requirements. Early-stage businesses benefit greatly from structured financial planning.

6. Explore Funding Opportunities: To facilitate growth, consider external funding (loans, investors) if internal cash generation remains limited.

7. Regular Financial Reviews: As the business grows, periodic financial health checks will help identify distress symptoms early and guide timely interventions.

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